Why Sunesis Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Sunesis Pharmaceuticals (NASDAQ: SNSS  ) has received an alarming one-star ranking.

With that in mind, let's take a closer look at Sunesis and see what CAPS investors are saying about the stock right now.

Sunesis facts

Headquarters (founded)

South San Francisco, Calif. (1998)

Market Cap

$280.8 million

Industry

Biotechnology

Trailing-12-Month Revenue

$5.7 million

Management

CEO Daniel Swisher Jr. (since 2004)
CFO Eric Bjerkholt (since 2004)

Return on Capital (average, past 3 years)

(61.2%)

Cash/Debt

$61.0 million / $23.8 million

Competitors

AstraZeneca
Corden Pharma Switzerland LLC
P
fizer

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 30% of the 96 members who have rated Sunesis believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star zzlangerhans, succinctly summed up the bear case for our ommunity:

Sunesis seems to have settled into a tight trading range since March, and I see [$5.50 per share] as a good trigger to set an underperform so as to take maximal advantage of the fluctuations. I'll likely stick with red thumbs because I think the stock is massively overvalued considering the negative implications of the 2012 interim analysis, which I delineated in one of my previous underperform pitches. As of now, topline data from the VALOR trial is expected in H1 2014 and I'm hoping for a huge upward run that will make puts enormously profitable.

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